Assume that water reduces to H2O. If so water is identical to H2O (according to one interpretation of the term `reduction´). At the same time, if water reduces to H2O then H2O does not reduce to water–the reduction relation is asymmetric. This generates a puzzle–if water just is H2O it is hard to see how we can account for the asymmetry of the reduction relation. The paper proposes a solution to this puzzle. It is argued that (i) the reduction predicate generates intensional contexts and that (ii) in order to account for the asymmetry, we should develop conditions on the meanings of expressions that flank the reduction predicate in true reduction statements. Finally, it is argued that if we adopt this interpretation, we can illuminate the epistemological difference between reduced and reducing item commonly referred to in the literature.